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Which of the following results in a probability distribution for possible project outcomes rather than a dollar estimate? a
Which of the following results in a probability distribution for possible project outcomes rather than a dollar estimate?
a.
Simulation analysis
b.
Discounted cash flow analysis
c.
Scenario analysis
d.
Sensitivity analysis
Expert Solution
The Correct answer is Simulation anaysis
The Simulation analysis is the method in which the calculations are made for the outcomes of events to arrive at the probability of the event to occur, it helps to analyze the risk in different models. Thus, the correct answer is Simulation.
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